What is Zerodha Coin?

Zerodha Coin :

Zerodha Coin is a platform where you can buy direct mutual funds online, with no commission passback, directly from asset management companies. Your mutual funds, stocks, currencies, bonds, and more, all in your Demat Account, in one place.

Mutual Funds Investment through a third party distributor:

What most people don’t know about is the concept of trail commissions that is earned by distributor. Every year for as long as you are invested, the distributor keeps earning upto 1.5% of your investment as commission. Since most people who invest into mutual funds do it for longer term, the commission paid as trail can take a big bite of your investment . For example Rs 5000 SIP invested monthly for 25 years, you could end up paying almost Rs 30 Lakhs as commissions, almost 20% of your corpus. (assuming you make 15% p.a compounded returns, paying a modest 1% as upfront and 1% as trail).

Direct Mutual Funds Investing:

Purchasing mutual funds direct would mean investing with the fund house directly without using distributor as intermediary. This would mean a saving of both upfront and trail commission on your investment. To invest directly, you can visit the fund house’s website or office, fill up the form and invest into the fund.